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BP Agrees to $25-Million Pact To Settle Alaska Crude-Oil Spills

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In a settlement with the U.S. Justice Dept. and other federal agencies, BP Exploration Alaska Inc. has agreed to pay a $25-million civil penalty for crude-oil spills in 2006, totaling more than 5,000 barrels, from its pipelines on Alaska's North Slope. Under the pact, announced May 3, BP also will put in place an estimated $60-million, pipeline-integrity program to include regular inspections. U.S. investigators found that two 2006 spills, totaling 5,078 barrels stemmed from BP's failure to inspect and maintain the pipeline well enough to prevent corrosion. The firm pleaded guilty in 2007 to a misdemeanor violation of the Clean Water Act and paid a $20-million criminal penalty. BP has spent $200 million to replace pipelines from which the oil spilled. BP said in a statement that it “did not admit any liability nor was there any per-barrel penalty assessed.”

 

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